Housing Policies Provoked Economic Meltdown

U.S. housing policies share a large part of the blame for the 2008 financial meltdown, conclude Republican members of congressional commission tasked with investigating the crisis, The New York Times reports. The newspaper said the views, laid out in a 13-page document provided to the Times, highlight the partisan divide on the Financial Crisis Inquiry Commission.

The Times said that while Democrats, who make up six of the 10-member commission, have focused on the role of Wall Street and mortgage lenders, Republicans have looked at the role of Fannie Mae and Freddie Mac.

According to the Times, the document, signed by the four Republican members of the commission, said that “the government subsidized and, in some cases, mandated the extension of credit to high-risk borrowers, propagating risks for financial firms, the mortgage market, taxpayers, and ultimately the financial system.”

The Times lists the four signers as Bill Thomas, the commission vice-chair and a former member of Congress, Keith Hennessey, a President George W. Bush adviser, Douglas Holtz-Eakin, who once headed the Congressional Budget Office, and Peter Wallison, White House counsel to President Ronald Reagan (pictured).